We believe there are numerous developments on the horizon for manufacturers and brands. Firstly, everyone is moving towards a direct-to-consumer approach, which will require significant investment of effort, time, and money. However, with constantly increasing customer acquisition costs, particularly on social media, not all businesses will achieve their desired success. Moreover, the media landscape, particularly on smartphones, will look different in the next few years.
Additionally, manufacturers are placing greater emphasis on marketplaces, driven by sales as well as branding and marketing efforts. However, many will need to learn a valuable lesson: pushing and showcasing an individual product or product group on Amazon or Instagram is far simpler than differentiating an entire product range on a website.
This brings us to the D2C brands phenomenon, which has provided significant insights in recent years. These nimble, fresh brands are eroding the market share of established brands, some benin telegram screening of them flying under the radar of market research. A good example of this is the cosmetics industry, where new brands emerge almost every week and are rapidly acquired by corporations. Successful D2C concepts are usually copied quickly, and with good sourcing conditions, the barriers to entry are reduced dramatically. Scaling is a great option when selling to consumers via social media platforms, and investors are more willing to pump money into promising concepts.
In contrast, many managers used to traditional business models may wonder if the old marketing rules are no longer applicable. Can fixed costs be shifted to a single product and still achieve marketing success? The world has become more granular and fluid, with almost all modules now available "as-a-service," rendering fixed costs obsolete. Even brands are no longer built to last forever but to fill a temporary niche on Amazon, a trend on Instagram, or an influencer's 15 minutes of fame. This reality should be a wake-up call for established manufacturers who must realize that there are several trends for which traditional brand strength and creative advertising claims cannot compensate.